SB 558 — PROP TX-SALES IN ERROR

*LRB09409595BDD39848b* SB0558 94THEngrossed GENERALLRB094 ASSEMBLY09595 StateBDD of39848 Illinoisb andAN 2006ACT SB0558concerning Introducedrevenue. 2/17/2005, by Sen.

James F.

Clayborne, Jr.

SYNOPSIS AS INTRODUCED:

ILCS 200/21-310 application for a tax sale to be declared to be a sale in error becausen improvements upon the property sold have been substantially destroyed or rendered uninhabitable or otherwise unfit for occupancy subsequent to the tax sale and prior to the issuance of the tax deed, the court shall require clear and convincing proof that the substantial destruction, uninhabitability, or unfitness for occupancy first developed, occurred, or arose subsequent to the tax sale.

Effective immediately.

LRB094 09595 BDD 39848 b FISCAL NOTE ACT HOUSING MAY APPLY AFFORDABILITY IMPACT NOTE ACT MAY APPLY A BILL FOR SB0558 LRB094 09595 BDD 39848 b AN ACT concerning revenue.

The Property Tax Code is amended by changing Section 21-31021-90 as follows:

(35 ILCS 200/21-310)200/21-90) Sec.

21-310.21-90.

SalesPurchase inand error.sale by county;

(a)distribution When, upon application of theproceeds. county collector, the owner of the certificate of purchase, or a municipality which owns or has owned the property ordered sold, it appears to the satisfaction of the court which ordered the property sold that any of the following subsections are applicable, the court shall declare the sale to be a sale in error:

(1)When theany property wasis notdelinquent, subjector tois taxation,forfeited orfor allany reason or anywhen parta oftax thesale lien of taxesany soldproperty has becomebeen nulldeclared andto voidbe pursuantin toerror Sectionunder 21-95Sections or21-310(b)(2), unenforceable21-310(b)(4), pursuantor to22-35 subsectioneach (c) of Section2 18-250 or subsectionmore (b)years, ofand Sectionthe 22-40,property (2)is theoffered taxesfor or specialis assessmentssubject hadto beensale paidunder priorany toof the saleprovisions of thethis property,Code, (3)the thereCounty isBoard aof doublethe assessment,County (4)in which the descriptionproperty is voidlocated, forin uncertainty,its (5)discretion, themay assessor,bid, chiefor, countyin assessmentthe officer,case board of review,forfeited boardproperty ofand appeals,any orproperty otheras countyto officialwhich hasa madeprevious antax errorsale (otherhas thanbeen andeclared error of judgment as to thebe valuein oferror anyunder property),Sections (5.5)21-31(b)(2), the21-310(b)(4), owneror of22-35, themay homesteadapply propertyto hadpurchase tenderedit, timelyin and full payment to the countyname collectorof that the ownerCounty reasonablyas believedtrustee wasfor dueall andtaxing owingdistricts onhaving thean homesteadinterest property,in and the countyproperty’s collectortaxes didor notspecial applyassessments for the paymentnonpayment toof which the homesteadproperty property;is sold.

providedThe thatpresiding thisofficer provisionof appliesthe onlycounty toboard, homeowners,with notthe theiradvice agentsand orconsent SB0558of -the 2Board, -may LRB094appoint 09595on BDDits 39848behalf bsome third-partyofficer payors,or (6)person prior to attend such sales and bid or, in the taxcase saleof aforfeited voluntaryproperty orand involuntaryany petitionproperty as to which a previous tax sale has been fileddeclared byto orbe againstin theerror legalunder orSections beneficial21-310(b)(4), owner21-310(b)(4), ofor the22-35, propertyto requestingapply reliefto under the provisionscounty ofclerk 11to U.S.C.purchase.

ChapterIf 7,the 11,County 12,Board applies to purchase any property that has been forfeited for any reason or 13,any property as to which a previous tax sale has been declared to be in error under Sections 21-310(b)(2), 21-310(b)(4), or (7)22-35, theno propertypublished or mailed notice is ownedrequired byprior theto Unitedsuch States,purchase and the Stateinterest ofrate Illinois,applicable aupon municipality,redemption oris aequal taxingto district.SB0558 Engrossed - 2 - LRB094 09595 BDD 39848 b the maximum penalty rate allowed by Section 21-215.

(b)The When,County uponshall applicationapply ofon the ownerbid ofor the certificate of purchase only, it appears to the satisfactionunpaid oftaxes theand courtspecial whichassessments ordereddue theupon property sold that any of the followingproperty. subsections are applicable, the court shall declare the sale to be a sale in error:

(1)No Acash voluntaryneed orbe involuntarypaid. petition under the provisions of 11 U.S.C.

ChapterThe 7,County 11,shall 12,take orall 13steps hasnecessary beento filedacquire subsequenttitle to the taxproperty sale and priormay tomanage theand issuanceoperate of the taxproperty. deed.

(2)When Thea improvementscounty, uponor theother propertytaxing solddistrict havewithin beenthe substantiallycounty, destroyedis ora renderedpetitioner uninhabitable or otherwise unfit for occupancya subsequent to the tax saledeed, andno priorfiling tofee theshall issuancebe ofrequired. the tax deed.

InWhen anya casecounty underor thisother itemtaxing (2),district within the courtcounty shallis requirethe clearpetitioner andfor convincinga prooftax deed, one petition may be filed including all parcels that theare substantialtax destruction,delinquent uninhabitability,within the county or unfitnesstaxing fordistrict, occupancyand firstany developed,publication occurred,made orunder aroseSection subsequent22-20 toof thethis taxCode sale.may combine all such parcels within a single notice.

(3)The Therenotice isshall anlist interest held by the Unitedstreet Statesor incommon theaddress, propertyif soldknown, whichof couldthe notparcels befor extinguishedinformational bypurposes. the tax deed.

(4) The realcounty, propertyas containstax acreditor hazardousand substance,as hazardoustrustee waste,for other tax creditors, or undergroundother storagetaxing tankdistrict thatwithin wouldthe requirecounty, cleanupshall ornot otherbe removalrequired underto anyallege federal,and State,prove orthat localall law,taxes ordinance,and orspecial regulation,assessments onlywhich ifbecome thedue taxand purchaserpayable purchasedafter the propertysale withoutto actualthe knowledgecounty ofhave been paid nor shall the hazardouscounty substance,be hazardousrequired waste,to pay the subsequently accruing taxes or undergroundspecial storageassessments tank.at any time.

ThisThe paragraphcounty (4)board appliesor onlyits ifdesignee themay ownerprohibit of the certificatecounty ofcollector purchasefrom hasincluding madethe applicationproperty for a sale in error at any time before the SB0558tax -sale 3of -one LRB094or 09595more BDDsubsequent 39848years. b issuance of a tax deed.

(c)The Whenlien the county collector discovers, within one year after the date of sale if taxes wereand soldspecial atassessments anwhich annualbecome taxdue saleand orpayable within 180 days after thea date of sale ifto taxes were sold at a scavengercounty taxshall sale,merge that a tax sale should not have occurred for one or more of the reasons set forth in subdivision (a)(1), (a)(2), (a)(6), or (a)(7) of this Section, the countyfee collectortitle shall notify the last known owner of the certificatecounty, of purchase by certified and regular mail, or other meanstaxing reasonablydistrict calculatedwithin tothe providecounty, actualon notice, that the countyissuance collector intends to declare an administrative sale in error and of thea reasonsdeed. therefor, including documentation sufficient to establish the reason why the sale should not have occurred.

The ownerCounty ofmay thesell certificateor ofassign purchasethe mayproperty objectso inacquired, writingor withinthe 28certificate daysof afterpurchase theto dateit, ofto theany mailingparty, byincluding thetaxing countydistricts. collector.

IfThe anproceeds objectionof isthat filed,sale theor countyassignment, collectorless shallall notcosts administrativelyof declarethe acounty saleincurred in error,the butacquisition mayand applysale toor theassignment circuitof courtthe forproperty, ashall salebe indistributed errorto asthe providedtaxing districts in subsectionproportion (a)to oftheir thisrespective Section.interests therein.

ThirtyUnder daysSections following21-110, the21-115, receipt21-120 of notice by the last known owner of the certificate of purchase, or within a reasonable time thereafter, the county collector shall make a written declaration, based upon clear and convincing21-405, evidence, that the taxes were sold in error and shall deliver a copyCounty thereofmay tobid theor countypurchase clerkonly within 30 days after the date the declaration is made for entry in the taxabsence judgment, sale, redemption, and forfeiture record pursuant to subsection (d) of thisother Section.bidders.

The county collector shall promptly notify the last known owner of the certificate of purchase of the declaration by regular mail and shall promptly pay the amount of the tax sale, together with interest and costs as provided in Section 21-315, upon surrender of the original certificate of purchase.

(d) If a sale is declared to be a sale in error, the county clerk shall make entry in the tax judgment, sale, redemption and forfeiture record, that the property was erroneously sold, and the county collector shall, on demand of the owner of the SB0558 - 4 - LRB094 09595 BDD 39848 b certificate of purchase, refund the amount paid, pay any interest and costs as may be ordered under Sections 21-315 through 21-335, and cancel the certificate so far as it relates to the property.

The county collector shall deduct from the accounts of the appropriate taxing bodies their pro rata amounts paid.

91-177,88-455; eff.

1-1-00;88-535;

91-357,89-412, eff.

7-29-99;11-17-95.)

91-924, eff.

1-1-01;

92-224, eff.

1-1-02;

92-729, eff.

7-25-02.) Section 99.